Kunkle Company Wishes to Earn 20% Annually on Its Investments

Multiple Choice

Kunkle Company wishes to earn 20% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $2 million and gets $500,000 in return at the end of each year for X years. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success? Assume that Kunkle can't invest for fractional parts of a year.

A) 4 years.
B) 6 years.
C) 7 years.
D) 9 years.